nep-net New Economics Papers
on Network Economics
Issue of 2008‒05‒05
five papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Introducing Social Capital Value Add: Manifesto for New Social Network Structural Management of Corporate Value By Michael, Cayley
  2. Localized technological externalities and the geographical distribution of firms By Giulio Bottazzi; Pietro Dindo
  3. A resource-based view on the interactions of university researchers By Frank J. van Rijnsoever; Laurens K. Hessels; Rens L.J. Vandeberg
  4. Türk Mobil Telekomünikasyon Hizmetlerinde Yeni Firmalarin Piyasaya Girisi ve Regülasyon Sorunlari By Mehmet Karaçuka; Recep Kök
  5. Inventors and the Geographical Breadth of Knowledge Spillovers By Paola Giuri; Myriam Mariani

  1. By: Michael, Cayley
    Abstract: Within the field of social capital study, concerns have been expressed that deviations from a fundamental understanding that social capital is captured from embedded resources in social networks may reduce the intellectual enterprise to a catch all fad (Lin, Cook, Burt, 1999). This paper is an argument that sometime in 2004, when broadband internet connections became more prevalent than those of less capacity, individuals became empowered as our most intense form of media. Scaled up effects of the Individual as Medium including: • increased information flow, • exertion of influence, • expansion of social credentials and reinforcement of identity and recognition, are consistent with a network theory of social capital. Corporations are exposed to new risks and opportunities due to these scaled up forms of social capital and they require new methods to manage them. Social Capital Value Add is introduced as such a new method, designed to link the pioneering intellectual enterprise of social capital to value based management and the priorities of marketers. A plausible SCVA valuation method is proposed to demonstrate how these links may be articulated in a way that is meaningful for investors and corporate managers.
    Keywords: "social capital"; "corporate value"; "Web 2.0"; finance; "corporate valuation"; valuation; "social media"; blog; podcast; RSS; syndication; "memetic brand"; marketing; "social networks"; brand; 2.0; Burt; “structural holes”; “weak ties”; “Nan Lin”; “social capital value add”; Cayley; broadband; “Olav Sorenson”; Ning; Facebook; MySpace; “Marc Andreesen”; “Mark Zuckerburg”; Skype; “inflection point”; “Point of inflection”; Granovetter; goodwill; “Matthew O. Jackson”; “idea habitats”; Heath; Berger; embeddedness; “embedded ties”; Uzzi; “network effects”; trust; reputation; “corporate reputation”; McLuhan; “Understanding Media”; “Marshall McLuhan”; “extensions of man”; “information flow”; “exertion of influence”; Rathergate; “information cascade”; Watts; Gladwell; Friedman; CGM; “consumer generate media”; word-of-mouth; WOM; buzz; “PR 2.0”; “public relations”; PR; CRM; “CRM 2.0”; “customer relationship management”; “social credentials”; recognition; identity; “social recognition”; “Individual as Medium”; I.A.M.; SCVA; “market positioning”; findability; “Jack Trout”; “Al Ries”; “Seth Godin”; humbug; “economic profit”; "economic value add"; “EVA”; “Interbrand”; “Microsoft Yahoo”; Digg; “value based management”; “Dell Hell”; “Kyle Minogue”; “Agent Provocateur”; Wal-Mart; “brand valuation”; “digital footprint”; “social identity”; “social engagement”; “value added earnings”; “branded earnings”; “Chris Anderson”; “The Long Tail”; “reciprocity”; CSR; “corporate social responsibility”; green; sustainability; E-Bay; Amazon; “rate & review”; comments
    JEL: M1 Z13 G3
    Date: 2008–03
  2. By: Giulio Bottazzi; Pietro Dindo
    Abstract: This letter investigates the role of technological externalities on the geographical distribution of firms. In an analytically solvable model, we show how the location of economic activities is affected by the trade-off between pecuniary externalities, as dependent on transportation costs, and localized technological externalities, as dependent on inter-regional spillovers.
    Date: 2008–04–24
  3. By: Frank J. van Rijnsoever; Laurens K. Hessels; Rens L.J. Vandeberg
    Abstract: The high value of collaboration among scientists and of interactions of university researchers with industry is generally acknowledged. In this study we explain the use of different knowledge networks at the individual level from a resource-based perspective. This involves viewing networks as a resource that offers competitive advantages to an individual university researcher in terms of career development. Our results show that networking and career development are strongly related, but it is important to distinguish between different types of networks. Although networks on various levels (faculty, university, scientific, industrial) show strong correlations, we found three significant differences. First, networking within one’s own faculty and with researchers from other universities stimulates careers, while interactions with industry do not. Second, during the course of an academic career a researcher’s scientific network activity first rises, but then declines after about 20 years. Science-industry collaboration, however, continuously increases. Third, the personality trait ‘global innovativeness’ positively influences science-science interactions, but not science-industry interactions.
    Keywords: research collaboration, science-industry interaction, individual researcher, resource-based view
    Date: 2008–04
  4. By: Mehmet Karaçuka (Department of Economics, Ege University); Recep Kök (Department of Economics, Dokuz Eylul University)
    Abstract: (This Paper is in Turkish) Services that are based on telecommunication networks, which are crucial infrastructural elements of the information societies, have been gaining increasing attention as composing higher shares within the economies. However, economies of scale in the supply side and network effects in the demand side prevent these markets to be perfectly competitive, and to reach social welfare maximizing equilibria; therefore making regulation a crucial instrument. Turkish mobile telecommunication services form the most competitive segment of overall telecommunication services in Turkey, where the competition process is dysfunctional in the fixed line services. Literature on network industries points out that incumbent firms may prevent new entrants’ competition via network effects and access/ interconnection charges. Our study emphasizes the importance of ex-ante regulation by analysing the strategic interaction among the entrant and incumbent firms in Turkish mobile telecommunications, as well as regulation problems.
    Keywords: Network effects, Competition in telecommunication markets, Regulation, Turkish mobile telecommunication markets, Sebeke etkileri, Telekomünikasyon piyasalarinda rekabet, Regülasyon, Türk mobil telekomünikasyon piyasalari
    Date: 2008–04
  5. By: Paola Giuri; Myriam Mariani
    Abstract: This paper studies the geographical breadth of knowledge spillovers. Previous research suggests that knowledge spillovers benefit from geographical proximity in technologically active and rich regions more than elsewhere. An alternative view explains the geographical breadth of knowledge spillovers as a function of the characteristics and personal networks of the individuals. We test these two competing theories by using information provided directly by the inventors of 6,750 European patents (PatVal-EU survey). Our results confirm the importance of inventors’ personal background. However, compared to previous research, we find that the level of education of the inventors is key in shaping the geographical breadth of knowledge spillovers. Highly educated inventors rely more on geographically wide research networks than their less educated peers. This holds after controlling for the mobility of the inventors and for the scientific nature of the research performed. Differently, location matters only in the very rare regions in Europe that perform the bulk of the research in the specific discipline of the inventors.
    JEL: O31 O33 R19
    Date: 2008

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